May 5, 2021
How to smartly finance a luxurious vacation
You don’t have to be rich or a celebrity to enjoy a luxurious vacation. True, such trips don’t come cheap and will require you to dig deep into your pocket. There’s a lot to budget for, including flight tickets, accommodation, meals, entertainment, transportation, and other related expenses, especially when traveling overseas. However, if money is the only thing keeping you from having a vacation of your dream, there are numerous ways to raise funds.
Here’s how to smartly finance a luxurious vacation:
Save for the Vacation
Have a well-laid-down plan of where you want to visit, the amount of money you’ll need for the vacation, and the period needed to raise it. Based on that information, start saving a specific amount every month, week, or even day.
Typically, saving can be difficult as it requires discipline and patience. So if you lack the two, you can consider setting up an account to save specifically for the trip. That will eliminate the temptation of spending the money in your bank account anytime a need arises.
Take a Loan
If you don’t have enough time to save money for your vacation, taking a loan would be the ideal option. You can choose between personal loan or a travel loan. If you know you can pay it off quickly, you might consider a quick loan from a reputable lender, but this might be a bit more expensive overall in case you can’t pay it off quickly.
With the personal loan, you’re allowed to check your eligibility anywhere and anytime provided you have internet access. However, it important to note that there are two types of personal loans; unsecured loans and secured loans. Unsecured loans are ideal when you need a small amount of money. It doesn’t require collateral and often has higher interest rates. A secured loan is for when you need a large sum of money. This type of loan requires you to back it up with a large collateral and usually has lower interest rates.
On the other hand, travel loans are precisely meant for vacations. That means you can only use it to finance your tour and nothing more.
Rent Out your Apartment
Some vacations may take a while, and your house may probably be unoccupied for all that time. You can rent out some space for at least a few hundred dollars or thousands a month. Put your house for lease at Airbnb in compliance with the rules that govern your city. The money you get will cover some of your expenses while you’re on vacation.
Capitalize on Travel Incentives
If your credit card score is good, you may use the reward points or other travel incentives to fund part of your travel expenses. And when you get enough air miles plus points, you can use them to cover your accommodation and the flight tickets. You can also research the various travel reward cards to see the offers you’re eligible for and claim them to fund your trip.
Cut Down your Expenses
How do you identify things you can survive without? Start by listing down the items you spend monthly and categorizing each as essential or non-essential. You’ll discover there are things you can let go of for the time being or for good and still live comfortably. Some tips on reducing expenses include:
• Lowering your housing expenses
• Reducing electricity use
• Get on a budget
• Consolidating your debt
• Re-evaluating your subscriptions
• Preparing meals at home instead of going out to eat
• Reducing your insurance premiums
• And more
When you’re ready to hike a distant mountain or relax on an exotic beach, your finances don’t have to hold you back. A good way to “live your dream” is by traveling to a foreign country and experiencing different cultures and cuisines without worrying about money. If anything, money is a single aspect of the equation, and there are myriad ways to solve it, as discussed above. You just have to be determined and start planning for everything.